CEO, CFO of scam-hit Karvy arrested in IndusInd Bank default case

Rajiv Ranjan Singh, Chief Executive Officer and G. Krishna Hari Chief Financial Officer of Karvy were arrested basing on a complaint by IndusInd bank.

Published: 02nd September 2021 07:21 PM  |   Last Updated: 03rd September 2021 08:44 AM   |  A+A-

Handcuffs, Arrest

For representational purposes. (File Photo)

By Express News Service

NEW DELHI:  Hyderabad police on Thursday arrested Rajiv Ranjan Singh, the Chief Operating officer and G. Krishna Hari, the Chief Financial Officer of Hyderabad-based Karvy Stock Broking Private Limited (KSBL), in connection with the Indusind Bank fraud case. A case was registered at the Central Crime Station (CCS) of Hyderabad city police on a complaint from the vice President of IndusInd Bank Hyderabad. 

KSBL is accused of availing credit facilities of Rs 137 crore from IndusInd bank by pledging securities and shares and personal guarantee of its Chairman and the Managing Director C Parthasarathi, by suppressing the facts that the pledged securities belong to the clients. The transactions were carried out without consent of the clients and also by misusing power of attorney, said Avinash Mohanty, Joint Commissioner of Police CCS, Hyderabad in a release.

Further, the securities were transferred into the Demat account of Karvy Stock Broking Private Limited and pledged before the IndusInd bank for margin and short term requirement in their businesses.  Meanwhile, in November 2019, The Securities and Exchange Board of India (SEBI) revoked the pledge of securities with Banks and NBFCs and returned the securities and accounts. As a result, IndusInd bank was left with no collateral security. This resulted in Karvy group defaulting repayments to the tune of Rs 137 crores as on March 31, 2021.


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